Horizonte Minerals (AIM:HZM) Award of key process plant contracts completed

Completion of awards of key process plant contracts at the Araguaia Nickel Project

Horizonte Minerals Plc (AIM: HZM, TSX: HZM), the nickel development company with assets in Brazil, is pleased to announce that it has awarded all major and long-lead-time process plant equipment contracts for the Company’s flagship Araguaia Nickel Project (“Araguaia” or the “Project”).

Following completion of the competitive tender processes, and detailed negotiations, the Company has now secured equipment supply and technical support services for the balance of the Araguaia process flow sheet from leading global suppliers. This is in line with the strategy employed for the award of the furnace contract to Hatch Ltd. earlier this year (see announcement dated 25 February 2022).

Horizonte is pleased to be working with FLSmidth A/S (“FLSmidth”), Metso Outotec Oyj (“Metso Outotec”), Uvån Hagfors Teknologi AB (“UHT”), Inteco Melting and Casting Technologies GMBH (“Inteco”) and other leading suppliers to the ferronickel industry. The successful completion of these contract awards is a significant de-risking event for the Project. Importantly it provides more certainty on costs for a material portion of the overall capital expenditure and builds confidence in the Project schedule by gaining commitments for the delivery of key equipment on site in the timeframe required.

Jeremy Martin, CEO of Horizonte, commented:

“Completing the award of these key process related contracts is a major milestone for the development of Araguaia as, together with the previously announced award of the furnace contract, this represents around US$135 million of capital expenditure on the Project and provides increased confidence in our planned development timelines. The first pieces of equipment are expected on site during Q4 of this year, in line with the overall project schedule. To date we have awarded contracts totalling US$293 million (including the US$135 million of process equipment noted above) on budget and on time, which continues the positive momentum building at Araguaia.

“From the outset we have pursued a strategy of working with best-in-class partners. It is pleasing to see all our contracts awarded to tier 1 industry-leading suppliers who bring significant experience and successful track records at similar projects in Brazil to our already experienced team. FLSmidth and Metso Outotec in particular have played a key role in our project development strategy as they underpin a significant portion of our export credit agency linked financing and we are grateful for the support they and their respective export credit agencies have provided to date.”

Summary of Process Plant Equipment Awards

The rotary kiln, rotary dryer and associated dust handling equipment supply contract has been awarded to FLSmidth. FLSmidth is a market-leading supplier of engineering, equipment, and service solutions, particularly to the ferronickel industry, notably to Anglo American’s Barro Alto and Vale’s Onca Puma nickel operations in Brazil. FLSmidth has a strong track record of providing equipment and technical support services, with extensive experience in processing ore with characteristics similar to Araguaia.

The ore preparation equipment contract involves the provision of primary, secondary and tertiary crushing, as well as the apron feeder that feeds the dryer. A primary dust control system for the reduction and refinery furnace, in addition to the secondary dust removal system will also be supplied. This contract has been awarded to Metso Outotec, a leader in end-to-end solutions and services for the minerals processing and metals refining industries, with presence in more than 50 countries. Metso Outotec has extensive experience in providing equipment for the mining industry, including for operations worldwide with similar processing plants. It has a substantial presence in Brazil to provide ongoing technical support.

Horizonte has also awarded a contract for the supply of metal granulation equipment to UHT and a contract for the supply of the refinery equipment package to Inteco, which will transform the crude ferronickel produced by the electric arc furnace to high grade ferronickel for sale to customers.

For further information, visit www.horizonteminerals.com or contact:

Horizonte Minerals plc

Jeremy Martin (CEO)

[email protected]

+44 (0) 203 356 2901

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